Cyprus: A property haven

The country offers a competitive edge when it comes to port operations.

As a Mediterranean island, Cyprus boasts long stretches of gorgeous beaches, a tranquil lifestyle under the sun, and reasonably priced luxury villas. This makes it incredibly tempting for expats to buy real estate in Cyprus, with the majority of families choosing to either relocate or possess a second home in this piece of paradise.

Acquiring a property in Cyprus, either as an investment or as a second home, has always been a popular choice among foreign investors.

A combination of high quality of life, year-round sunshine and natural beauty, ease of doing business and investment incentives offer investors an attractive experience in terms of both living and doing business. Being a historically key pillar of the Cyprus economy, the real estate and construction sector have experienced remarkable growth in the past years, manifested in increased demand and activity levels, prestigious large-scale projects, incentives and an influx of foreign investment.

In recent years, there has been an increase in the interest of acquiring real estate property in Cyprus. Being an island located in the Eastern Mediterranean, a member of the European Union since 2004, having a tax system which favours investment in real estate and having formed double taxation treaties with several states, combined with the hot climate and natural beauties of the island, has led Cyprus to become an ideal hub for real estate investment.

European Union citizens are allowed to acquire residential and commercial real estate in Cyprus without any restrictions. Citizens of non-EU countries on the other hand, can acquire real estate in Cyprus, but permission from the Council of Ministers is required. Upon obtaining the permission and registering the property in the name of the foreign buyer, the owner of the property may sell or dispose of the property at his own discretion.

A EY report stated that Covid-19 has changed structurally the way we work and live almost overnight and is likely to have a longstanding impact on many sectors including real estate, a sector which had been on an upward trend in recent years. In Cyprus, there has been a series of support measures implemented by the government in an effort to prop-up the local economy and facilitate its recovery. As people return to their daily business routine, there is little doubt that there is still a long road ahead, paved with economic restructuring and business transformations in order to adapt to the new era. The real estate sector traditionally constitutes one of the main pillars of the Cypriot economy and its performance is inextricably linked to that of the broader economy. Given the disruption that Covid-19 pandemic has caused in the overall economy, it is expected that the real estate sector will play a key role in its eventual recovery.

The Cyprus real estate market has historically been divided into the major urban centres of Nicosia, Limassol and Larnaca (primarily driven by local demand); and the seaside resort areas of Paphos and Famagusta, which are mostly driven by foreign demand.